LESSONS FROM OUR AVERAGE CUSTOMER

The average customer for our Market Signals investing service tells us a lot about our service and the investing journey for more sophisticated investors.  Look at the highlights in the table below.

Here is what I take away from this data.

• Our typical customer has been investing and managing their 401K for many years.  At 49 years of age, they are not 401K rookies.

• They have done a good job with their retirement accounts before they came to us for help.  Their account balances are about double the average for their age.

• Their previous investment returns were not bad but not great either.  For the most part, they have followed the industry advice and have used a balanced or Target Date fund approach.  As a result, they have been getting annual investment returns of between 6% and 7% per year.

• Their investing knowledge and their investing experience are definitely above average.  Most have worked with more than one investment advisor previously.  This is why they have been getting the “best” that industry has to offer with 6.5% investment returns.

• The most sophisticated investors recognize the tremendous benefits from our approach but the less knowledgeable investors need our services more.

The other characteristic that I observe when talking to our customers and FIXING THEIR 401K is that they are frustrated.  They know that they can and should be doing better with their 401K investments even though their balances are above average for their age.  They are frustrated watching their accounts grow by 6.5% while the S&P 500 index funds grow by 10%.

They are frustrated with the big losses they have absorbed during stock market collapses.  Their investment advisors told them that their balance portfolios (asset allocation method) would protect their savings during bear market but that has not been the case. 

I love all of our customers and I am very pleased to be helping them achieve the results that they deserve.  But I must admit that it is a bit frustrating to have to wait for people to learn painful investing lessons over decades before they seek out a better solution with us. 

Unfortunately, people need to learn from the school of hard knocks (sometimes for ten years or more) before they realize they need a better or different approach.  I guess it is human nature.  Those of you with children are well aware of this phenomenon.  People have to learn life’s painful lessons on their own most of the time.

The frustrating part for me is that the sooner that people figure this out, the better off they will be.  My dream is to be able to help younger people get the benefits of a better investing approach.  The power of time and the power of compounding is in their favor.

Where are you on your investing journey?  How many more mistakes do you need to make before you realize you need a better way?  Hopefully, you won’t struggle for another decade or more.

If you want to make changes and FIX YOUR 401K sooner rather than later, schedule a consultation by clicking the link below.

FREE CONSULTATION

Happy Investing,

Phil

---

Disclaimers The Beyond Buy & Hold newsletter is published and provided for informational and entertainment purposes only. We are not advising, and will not advise you personally, concerning the nature, potential, value, or suitability of any particular security, portfolio of securities, transaction, investment strategy or other matter. Beyond Buy & Hold recommends you consult a licensed or registered professional before making any investment decision.

Investing in the financial products discussed in the Newsletter involves risk. Trading in such securities can result in immediate and substantial losses of the capital invested. Past performance is not necessarily indicative of future results. Actual results will vary widely given a variety of factors such as experience, skill, risk mitigation practices, and market dynamics.